美國沃那多房產 (VNO) 2023 Q2 法說會逐字稿

Good morning, and welcome to the Vornado Realty Trust Second Quarter 2023 Earnings Call. My name is Gary, and I will be your operator for today's call. This call is being recorded for replay purposes. (Operator Instructions) I will now turn the call over to Mr. Steve Borenstein, Senior Vice President and Corporation Counsel. Please go ahead.

早上好，歡迎參加沃納多房地產信託 2023 年第二季度收益電話會議。我叫加里，我是今天電話的接線員。此通話正在錄音以供重播。 （操作員指示）我現在將電話轉給高級副總裁兼公司法律顧問 Steve Borenstein 先生。請繼續。

Welcome to Vornado Realty Trust Second Quarter Earnings Call. Yesterday afternoon, we issued our second quarter earnings release and filed our quarterly report on Form 10-Q with the Securities and Exchange Commission. These documents, as well as our supplemental financial information package are available on our website, www.vno.com, under the Investor Relations section. In these documents and during today's call, we will discuss certain non-GAAP financial measures. Reconciliations of these measures to the most directly comparable GAAP measures are included in our earnings release, Form 10-Q and financial supplement. Please be aware that statements made during this call may be deemed forward-looking statements, and actual results may differ materially from these statements due to a variety of risks, uncertainties and other factors. Please refer to our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2022, for more information regarding risks and uncertainties. .

歡迎參加沃納多房地產信託第二季度收益電話會議。昨天下午，我們發布了第二季度收益報告，並向美國證券交易委員會提交了 10-Q 表格的季度報告。這些文件以及我們的補充財務信息包可在我們的網站 www.vno.com 的投資者關係部分獲取。在這些文件和今天的電話會議中，我們將討論某些非公認會計準則財務措施。這些指標與最直接可比的 GAAP 指標的調節包含在我們的收益發布、10-Q 表格和財務補充資料中。請注意，本次電話會議期間所做的陳述可能被視為前瞻性陳述，由於各種風險、不確定性和其他因素，實際結果可能與這些陳述存在重大差異。請參閱我們向美國證券交易委員會提交的文件，包括截至 2022 年 12 月 31 日的年度 10-K 表格年度報告，了解有關風險和不確定性的更多信息。 。

The call may include time-sensitive information that may be accurate only as of today's date. The company does not undertake a duty to update any forward-looking statements. On the call today from management for our opening comments are Steven Roth, Chairman and Chief Executive Officer; and Michael Franco, President and Chief Financial Officer. Our senior team is also present and available for questions. I will now turn the call over to Steven Roth.

通話中可能包含對時間敏感的信息，這些信息僅截至今天才准確。該公司不承擔更新任何前瞻性陳述的義務。今天，董事長兼首席執行官史蒂文·羅斯 (Steven Roth) 在管理層的電話會議上發表了開場評論。以及總裁兼首席財務官邁克爾·弗蘭科 (Michael Franco)。我們的高級團隊也出席並回答問題。我現在將把電話轉給史蒂文·羅斯。

Thank you, Steve, and good morning, everyone. It seems to me there's a very close parallel between what happens to malls and what is now happening to office. Five years or so ago, there was universal certainty that mall and brick-and-mortar REIT were dead forever, the victim of ubiquitous and explosively growing e-commerce. Capital markets shut down, no new malls were built. But behold today, 5 years later, malls are booming. Sound familiar? It seems to be that CBD office in all our cities, New York included, has fallen victim to the same emotional and shortsighted view in the investment community. Work from home is to office what the Internet was to retail. We believe in office work is the better bet and a little time frozen capital markets, and no new supply will restore value and glory to office. Malls and office and the center cities of America are not going away. Our business is continuing to perform well and on plan in this environment. Michael will cover the math and give color in a moment.

謝謝你，史蒂夫，大家早上好。在我看來，購物中心的情況與現在辦公室的情況非常相似。大約五年前，人們普遍確信購物中心和實體房地產投資信託基金將永遠消亡，成為無處不在且爆炸性增長的電子商務的受害者。資本市場關閉，沒有建造新的購物中心。但五年後的今天，購物中心正在蓬勃發展。聽起來有點熟？包括紐約在內的所有城市的 CBD 辦事處似乎都成為了投資界同樣情緒化和短視觀點的受害者。在家工作之於辦公室，就像互聯網之於零售業一樣。我們相信，辦公室工作是更好的選擇，資本市場稍有凍結，任何新的供應都無法恢復辦公室的價值和榮耀。美國的購物中心、寫字樓和中心城市不會消失。在這種環境下，我們的業務繼續按計劃良好運行。邁克爾稍後會介紹數學知識並給出顏色。

The principal difference in our numbers this year to last year is the rise in interest rates. Overall, the economy has been more resilient than we expected in the face of the Fed's historic interest rate hikes. Real estate capital markets remain challenged even for us. Highlights of our immediate business plan are to conserve cash and protect our balance sheet and even to raise cash by accretively selling select assets to reduce debt and buy back stock, and for us, the Penn District continues to be the main event. At Farley, PENN 1 and PENN 2 come online, they will create significant growth and shareholder value with much more to come. Over the last few months, we bought back 2,025,000 shares for $29 million at an average price of [$14.40]

我們今年的數據與去年的主要差異是利率的上升。總體而言，面對美聯儲歷史性加息，經濟的彈性比我們預期的要強。即使對我們來說，房地產資本市場仍然面臨挑戰。我們當前業務計劃的重點是節省現金並保護我們的資產負債表，甚至通過增加出售精選資產以減少債務和回購股票來籌集現金，對我們來說，賓夕法尼亞區仍然是主要事件。在 Farley，PENN 1 和 PENN 2 上線，它們將創造顯著的增長和股東價值，並且未來還會有更多。在過去的幾個月裡，我們以 2,900 萬美元的平均價格回購了 2,025,000 股股票，平均價格為 [14.40 美元]

Sam Zell passed away on May 18. There was a memorial service in his honor in Chicago 3 weeks ago. Over 1,000 people attended. I gave a eulogy. It could be said that Sam was the father of the publicly traded REIT market. He called it liquid real estate. I wish us all to be as smart and as accomplished and live life as large as Sam did. I apologize in advance, but Glen and I must leave at 11:15 for a tenant meeting. Now over to Michael to cover our financials and the market.

薩姆·澤爾 (Sam Zell) 於 5 月 18 日去世。三週前，芝加哥為他舉行了一場追悼會。超過 1,000 人參加。我致悼詞。可以說，薩姆是公開交易的房地產投資信託市場之父。他稱之為流動性房地產。我希望我們都像薩姆一樣聰明、有成就，過著充實的生活。我提前道歉，但格倫和我必須在 11:15 出發參加租戶會議。現在請邁克爾介紹我們的財務和市場情況。

Thank you, Steve, and good morning, everyone. Though down from last year, we had a solid quarter as it relates to our core business. Second quarter comparable FFO as adjusted, was $0.72 per share compared to $0.83 for last year's second quarter, a decrease of $0.11 or 13.3%, driven primarily by expected higher net interest expense from increased rates. In addition, there were several nonrecurring items in the quarter that essentially offset each other. Those items include $0.07 of termination income from a former tenant at 345 Montgomery Street in San Francisco, offset by $0.02 of additional interest expense related to the restructuring of the St. Regis retail loan, which is forgiven by the lenders, but is required to be recognized by GAAP and $0.04 of additional stock compensation expense related to the new compensation plan we implemented in June. We have provided a quarter-over-quarter bridge in our earnings release and in our financial supplement.

謝謝你，史蒂夫，大家早上好。儘管與去年相比有所下降，但我們的季度業績表現穩健，因為這與我們的核心業務有關。第二季度調整後的可比 FFO 為每股 0.72 美元，與去年第二季度的 0.83 美元相比，下降了 0.11 美元或 13.3%，這主要是由於利率上升導致的淨利息支出預期增加。此外，本季度還有多項非經常性項目基本上相互抵消。這些項目包括舊金山蒙哥馬利街 345 號前租戶的 0.07 美元終止收入，並被與瑞吉零售貸款重組相關的 0.02 美元額外利息費用所抵消，該利息費用由貸方免除，但需要經GAAP 認可，以及與我們6 月份實施的新薪酬計劃相關的0.04 美元額外股票薪酬費用。我們在收益發布和財務補充中提供了季度環比的橋樑。

Notwithstanding the headwinds from higher interest rates and the impact from nonrecurring items, our core office and retail businesses remain resilient with long-term credit leases. Our New York Cash same-store office business was up 3%, and our New York business overall was up 2.7%. With respect to the remainder of 2023, you'll recall that we previously said that we expect 2023 comparable FFO to be down from 2022 and provided the known impact of certain items totaling a $0.55 reduction, primarily from the effect of rising interest rates. Our outlook hasn't changed since the beginning of the year. Though with the additional recurring expense related to the new share-based awards granted in June, you can expect an additional G&A expense of approximately $0.05 in total for the rest of the year.

儘管面臨利率上升的不利因素和非經常性項目的影響，我們的核心辦公和零售業務仍然通過長期信貸租賃保持彈性。我們的紐約現金同店辦公業務增長了 3%，我們的紐約業務整體增長了 2.7%。關於2023 年剩餘時間，您可能還記得我們之前說過，我們預計2023 年的可比FFO 將比2022 年有所下降，並假設某些項目的已知影響總計減少0.55 美元，主要是由於利率上升的影響。自今年年初以來，我們的前景沒有改變。儘管與 6 月份授予的新股份獎勵相關的額外經常性費用，您預計今年剩餘時間的額外 G&A 費用總計約為 0.05 美元。

For 2024, the incremental impact of the plan versus our prior year run rate is $0.02 to $0.03 overall. Of course, our expectation of FFO is absent the impact of any potential additional asset sales. Now turning to the leasing markets. Against the backdrop of the Fed sharp interest rate increases, we continue to be encouraged by the level of activity year-to-date. Leasing activity has been led by strong demand from traditional industries, financial services and law firms, in particular, with many financial firms growing their footprint and accounting for almost 40% of the 5.2 million square feet leased in the quarter. Overall, tenants in the market continue to be focused on the highest quality new or redeveloped Class A buildings that are well amenitized, have strong sponsorship and our near transportation in Midtown and the website. Which is resulting in rents moving up in these buildings.

到 2024 年，該計劃相對於我們上一年運行率的增量影響總體為 0.02 至 0.03 美元。當然，我們對 FFO 的預期不包括任何潛在的額外資產出售的影響。現在轉向租賃市場。在美聯儲大幅加息的背景下，我們繼續對今年迄今的經濟活動水平感到鼓舞。傳統行業、金融服務和律師事務所的強勁需求帶動了租賃活動，尤其是許多金融公司的足跡不斷擴大，佔本季度 520 萬平方英尺租賃面積的近 40%。總體而言，市場上的租戶繼續關注最高品質的新建或重建的甲級建築，這些建築設施齊全，擁有強大的讚助以及我們在中城和網站附近的交通。這導致這些建築物的租金上漲。

Our office portfolio is filled with these types of buildings. Midtown accounted for 70% of this quarter's leasing activity with 75% of Midtown leasing occurring in Class A properties, reinforcing the flight to quality theme. For companies, it's all about tenant attraction and retention and creating culture and they are willing to pay more for the right work environment that will help accomplish these objectives. Taking rents in top-tier buildings are at peak levels and the delta between Class A and Class B properties continues to widen. While there is solid activity in the market, large requirement deal flow is lagging, concessions remain stubbornly high. Focusing on our portfolio. During the second quarter, we completed 19 leases, totaling 279,000 square feet with very healthy metrics, including starting rents at $91.57 per square foot and a positive mark-to-market of 5.7% cash and 9.9% GAAP.

我們的辦公樓中充滿了這些類型的建築。中城佔本季度租賃活動的 70%，其中 75% 的中城租賃發生在 A 級物業，強化了向優質主題的轉變。對於公司來說，這一切都與吸引和保留租戶以及創造文化有關，他們願意為有助於實現這些目標的合適的工作環境支付更多費用。頂級建築的租金處於最高水平，A 級和 B 級物業之間的差距繼續擴大。儘管市場活動活躍，但大量需求交易流量滯後，優惠仍然居高不下。專注於我們的投資組合。第二季度，我們完成了 19 項租賃，總面積為 279,000 平方英尺，指標非常健康，包括每平方英尺 91.57 美元的起始租金以及 5.7% 的現金和 9.9% GAAP 的積極市價。

Overall, for the first 6 months of the year, we have signed 1 million square feet of leases at a market-leading $99 per square foot. Our average starting rents continue to trend up, evidencing the quality of our portfolio and the continued flight to quality we've discussed. At PENN 1, we continue to execute a steady stream of leases with new top-tier tenants at attractive rents, reflecting tenants attraction to the unique amenity offering we have in the most successful location in the city. Last quarter, we signed a lease with Samsung at the building. This quarter, we signed a 72,000 square foot lease with Canaccord Genuity, a leading financial services firm. Tour activity is picking up at PENN 2 as well now that the project is nearing completion and tenants can better appreciate the redeveloped product.

總體而言，今年前 6 個月，我們以每平方英尺 99 美元的市場領先價格簽署了 100 萬平方英尺的租賃合同。我們的平均起始租金繼續呈上升趨勢，證明了我們投資組合的質量以及我們所討論的持續追求質量的趨勢。在 PENN 1，我們繼續以極具吸引力的租金與新的頂級租戶簽訂穩定的租賃合同，這反映出租戶對我們在這座城市最成功的地段所提供的獨特便利設施的吸引力。上季度，我們與三星簽署了該大樓的租約。本季度，我們與領先的金融服務公司 Canaccord Genuity 簽署了 72,000 平方英尺的租賃合同。 PENN 2 的旅遊活動也開始增多，因為該項目已接近完工，租戶可以更好地欣賞重新開發的產品。

PENN 1 and PENN 2 now compete in the very top tier of the marketplace, in most cases versus new construction to the west of us at Manhattan West and Hudson Yards. This is a testament to the marketplace's reception to these 2 market-leading projects as well as confidence in the future of Penn District as the new epicenter of New York. Overall, we have very good activity in many of our assets, including strong deal volume at 1290 Sixth Avenue and 280 Park and at higher rents than we previously forecasted. Here's the headline. Industry insiders understand there's a shortage of good space on Park Avenue and Sixth Avenue. Actual vacancy is below 10% and rents are moving up nicely. There are certain competitive pockets in the market, such as these, where there is a healthy tenant landlord equilibrium, allowing us to push rental rates higher in our best-in-class buildings. Our leasing pipeline in New York is strong and not reflective of the media's negative office narrative.

PENN 1 和 PENN 2 現在在市場的最頂層競爭，在大多數情況下與我們以西的曼哈頓西區和哈德遜城市廣場的新建築競爭。這證明了市場對這兩個市場領先項目的認可，以及對賓夕法尼亞區作為紐約新中心的未來的信心。總體而言，我們的許多資產都表現良好，包括第六大道 1290 號和公園 280 號的交易量強勁，租金也高於我們之前的預測。這是標題。業內人士了解到，公園大道和第六大道缺乏優質空間。實際空置率低於10%，租金上漲良好。市場上存在某些競爭區域，例如這些區域，存在健康的租戶房東平衡，使我們能夠提高一流建築的租金水平。我們在紐約的租賃渠道很強勁，並沒有反映出媒體對辦公室的負面報導。

We have 580,000 square feet of leases in negotiation, plus an additional 1.2 million square feet in our pipeline. This activity is well balanced in buildings where we have current vacancy and known vacancy where space is coming back to us over the next 18 months and is a good mix of new deals, renewals and expansions. The financial sector, in particular, continues to be the most active. Much of our retail leasing this quarter occurred in the Penn District, primarily a mix of food and fitness activations, as we continue to curate the district like no other neighborhood in the city. We are excited about the best-in-class operators we are bringing to the district. And more importantly, both our current and prospective office tenants are really enjoying everything we have done we have recently announced. We have much more than the words here.

我們正在協商 580,000 平方英尺的租約，另外還有 120 萬平方英尺的土地正在籌備中。這項活動在目前有空置的建築和已知空置的建築中得到了很好的平衡，這些空置的空間將在未來18 個月內重新回到我們手中，並且是新交易、更新和擴建的良好組合。尤其是金融部門，仍然是最活躍的。本季度我們的大部分零售租賃都發生在賓夕法尼亞區，主要是食品和健身活動的混合體，因為我們繼續像該市其他社區一樣策劃該地區。我們對為該地區帶來一流的運營商感到興奮。更重要的是，我們當前和未來的辦公室租戶都非常享受我們最近宣布的一切。我們所擁有的遠不止這裡的文字。

Turning to the capital markets now. The financing markets remain highly constrained, particularly for office, driven by volatility from the Fed sharp rate increases. There's more appetite for retail as this asset class is perceived to have bottomed. Banks are dealing with an increase in problem loans, regulator scrutiny and lack of loan attrition and thus they remain cautious and constrained in lending. The tone of the CMBS market has improved modestly in the past quarter, but is still largely closed. High-quality sponsorship is more important than ever. We are in good shape though. We have no material maturities until mid-2024. During the quarter, we completed the restructuring of the St. Regis retail loan, adding 5 years of term and also extended a couple of smaller loans that had near-term maturities.

現在轉向資本市場。受美聯儲大幅加息帶來的波動影響，融資市場仍然受到高度限制，尤其是辦公室融資市場。由於零售資產類別被認為已經觸底，因此人們對零售的興趣更大。銀行正在應對問題貸款增加、監管機構審查和貸款消耗不足的問題，因此它們在放貸方面保持謹慎和限制。 CMBS 市場基調在過去一個季度略有改善，但仍基本處於封閉狀態。高質量的讚助比以往任何時候都更加重要。不過我們的狀態很好。到 2024 年中期，我們還沒有實質性的到期日。本季度，我們完成了瑞吉零售貸款的重組，增加了 5 年期限，並延長了幾筆近期到期的小額貸款。

We are actively working with our lenders to push out the maturities on our loans that mature in 2024 and beyond. Our mantra remains consistent as we continue to review the portfolio. If an asset is overleveraged or not refinanceable, we will support the asset only if we have sufficient term for the asset or markets to recover. We were able to do this because the loans are secured by individual assets and are generally non-recourse. We have found the banks to be cooperative in working through these situations thus far, servicers, TBD. You will see in our financials that we continue to push out our interest rate hedges, giving us good protection over the next few years from future increases. Finally, we continue to be active in selling assets and recently announced the sale of 4 small retail assets in Manhattan, which don't produce much FFO closing in the third quarter and the Armory Show, which closed in July.

我們正在積極與貸方合作，推遲 2024 年及以後到期的貸款的到期日。當我們繼續審查產品組合時，我們的口號始終如一。如果資產槓桿過高或不可再融資，只有當我們有足夠的期限讓資產或市場恢復時，我們才會支持該資產。我們之所以能夠做到這一點，是因為貸款由個人資產擔保，並且通常是無追索權的。到目前為止，我們發現銀行在解決這些情況方面是合作的，服務商，待定。您會在我們的財務數據中看到，我們繼續推出利率對沖，為我們在未來幾年內提供良好的保護，免受未來利率上漲的影響。最後，我們繼續積極出售資產，最近宣佈出售曼哈頓的 4 個小型零售資產，這些資產在第三季度關閉的 FFO 和 7 月關閉的軍械庫博覽會上產生的收益並不多。

We are hard at work on others as well. In these volatile times, we remain focused on maintaining balance sheet strength. Our current liquidity is a strong $3.2 billion, including $1.3 billion of cash and restricted cash and $1.9 billion undrawn under our $2.5 billion revolving credit facilities. With that, I'll turn it over to the operator for Q&A.

我們也致力於其他方面的工作。在這個動蕩的時期，我們仍然專注於維持資產負債表的實力。我們目前的流動性高達 32 億美元，其中包括 13 億美元現金和限制性現金，以及 25 億美元循環信貸額度下未提取的 19 億美元。這樣，我會將其轉交給接線員進行問答。

(Operator Instructions) The first question comes from Steve Sakwa with Evercore ISI.

（操作員說明）第一個問題來自 Evercore ISI 的 Steve Sakwa。

Michael, I was wondering if you could maybe just comment or elaborate a little bit more on the leasing pipeline that you talked about. And how much of that relates to kind of the lease-up of 2 PENN, and then also just on the New York leasing, the spreads were reasonably good. I'm just wondering how much of the leasing in the quarter was at PENN 1 where I know you're achieving very strong uplift.

邁克爾，我想知道您是否可以就您談到的租賃渠道發表評論或詳細說明一下。其中有多少與 2 PENN 的租賃類型有關，而且就紐約的租賃而言，價差相當不錯。我只是想知道本季度 PENN 1 的租賃量有多少，我知道你們正在實現非常強勁的增長。

Steve, I'm going to turn over to Glen to tackle that I'll follow up if necessary.

史蒂夫，我將交給格倫來解決這個問題，如有必要，我會跟進。

Steve, it's Glenn. So in terms of the quarter, about 40% of the activity was at PENN 1, including the headline Canaccord deal. As it relates to the pipeline, a very strong pipeline, almost 600,000 feet of leases out, another 1.2 million in the works. I sketched out this morning, my calendar for the week. We've got a final LOI, the final innings for a 320,000-foot tenant. We're getting a lease out for another 240,000 foot tenant. We responded to an LOI for 275,000 feet and we're deep in term sheets with another firm for 175,000 feet. So we're busier than we've been, doing much better as we go, which we predicted. We do have very good action also at PENN 2 at this point, lots of tours. We have some proposals in the house, project is showing very well, and we feel great about PENN 2 coming out of the shoot later this year.

史蒂夫，我是格倫。因此，就本季度而言，約 40% 的活動發生在 PENN 1，其中包括頭條新聞 Canaccord 交易。就管道而言，這是一條非常強大的管道，已出租近 60 萬英尺，另有 120 萬英尺正在施工中。今天早上我草擬了本週的日曆。我們已經有了最終意向書，即 320,000 英尺租戶的最後一局。我們正在為另一個 240,000 英尺的租戶出租。我們響應了 275,000 英尺的意向書，並且與另一家公司就 175,000 英尺的項目簽訂了深入的投資意向書。所以我們比以前更忙，做得更好，正如我們所預測的那樣。目前，我們在 PENN 2 也有非常好的活動，有很多巡演。我們在工作室裡有一些建議，項目進展順利，我們對今年晚些時候拍攝的《PENN 2》感到非常高興。

Okay. And maybe a question for Steve or Michael. Just as you think about the dividend, I know you sort of put the dividend at least on the back burner as you sort of contemplated asset sales and you've got a few that you talked about, some of these retail assets in the Armory. I guess, are there other larger assets that you're contemplating, bringing to market between now and the end of the year? And I guess, just sort of what's the updated thought on the dividend and then the pace of buybacks.

好的。也許還有一個問題要問史蒂夫或邁克爾。正如您考慮股息一樣，我知道您在考慮資產出售時至少將股息放在次要位置，並且您已經談到了一些，其中一些是軍械庫中的零售資產。我想，從現在到今年年底，您是否正在考慮將其他更大的資產推向市場？我想，這就是關於股息和回購步伐的最新想法。

Steve. So the answer is, I think we talked on the last call, we're going to be opportunistic about looking to sell assets. We obviously announced a few small ones last week. We're working on some others. There could be a couple of larger ones. I can't play the tax impact yet. I think in total, by the way, on the ones we just sold, there'll be a tax loss on those. So that will reduce taxable income. And as we've said historically, our policy is to pay taxable income, we'll evaluate where we end up at the end of the year in terms of cash versus stock mix. Our objective, I think, has been to retain cash, utilize it for buyback, utilize it to pay down debt. But we'll see at the end of the year. And while other things get done before the end of the year, possibly, but it's all these things have a pace of when they can get done. And so I can't tell you anything else large is going to get done definitively by year-end, but we're working on some things.

史蒂夫.所以答案是，我認為我們在上次電話會議中談到，我們將抓住機會出售資產。上週我們顯然宣布了一些小事情。我們正在研究其他一些。可能有幾個更大的。我還無法計算稅收影響。順便說一句，我認為總的來說，對於我們剛剛出售的那些，會有稅收損失。這樣就會減少應稅收入。正如我們歷史上所說，我們的政策是支付應稅收入，我們將根據現金與股票組合來評估我們在年底的最終結果。我認為，我們的目標是保留現金，用它來回購，用它來償還債務。但我們會在今年年底看到。雖然其他事情可能會在年底前完成，但所有這些事情都有一個完成時間的進度。因此，我無法告訴您年底前將明確完成任何其他大型工作，但我們正在做一些事情。

The next question is from Camille Bonnel with Bank of America.

下一個問題來自美國銀行的 Camille Bonnel。

Michael, you provided commentary around the mark-to-market opportunity for 1290 Avenue of Americas. Are you able to quantify this for the rest of your expiries through 2024? Are the market opportunities there positive? Or are there any meaningful unique leases that are above market rents?

Michael，您對 1290 Avenue of Americas 的按市價計價機會提供了評論。您能否量化 2024 年剩餘期限內的情況？那裡的市場機會是否積極？或者是否有任何高於市場租金的有意義的獨特租賃？

It's Glen Weiss. As usual, it's hard to predict the mark-to-markets quarter-to-quarter because that will depend on our activity. As Michael said, we're really right now really pleased with the rent levels we're seeing at the buildings where we have major expiries coming, whether it's 1290, 770, 280 or otherwise, but it's hard to predict where they're going to lay out, but we feel good about the rents. And our starting rents have been extremely strong and consistent for the last, I think, 2 years in the '80s, even 90s, this year of the 1 million feet we've leased, our starting rents are $99 a foot. So it shows just the quality of our buildings, the pace of our leasing is picking up. So on the mark-to-market, I can't really predict exactly what's going to happen here, but we feel our rents are top-tier throughout, and we're making matches everywhere right now.

我是格倫·韋斯。與往常一樣，很難預測每個季度的市價，因為這取決於我們的活動。正如邁克爾所說，我們現在對即將到期的建築物的租金水平非常滿意，無論是 1290、770、280 還是其他，但很難預測它們會走向何方佈局，但我們對租金感覺良好。我認為，我們的起始租金在過去的兩年中一直非常強勁且穩定，在 80 年代，甚至 90 年代，今年我們租用了 100 萬英尺，我們的起始租金為每英尺 99 美元。因此，這表明了我們建築的質量，我們的租賃步伐正在加快。因此，按市值計算，我無法準確預測這裡會發生什麼，但我們覺得我們的租金自始至終都是頂級的，而且我們現在正在各地進行匹配。

I would just add that I think it's hard to predict. And even as we sit here, it's August, right? And so as we look at the activity, we talk about the submarkets like Park Avenue, Sixth Avenue for the Class A buildings. Rents are up double digits from 6, 9 months ago, right? And so if you had asked us 6, 9 months ago where the mark-to-market be on some of those leases, they wouldn't have been as strong as they're turning out to be or what's in the pipeline. So to sit here and tell you what they may be in 2024, we can't predict. But I think what you're hearing from us is that I think it's a really important point, right?

我想補充一點，我認為這很難預測。即使我們坐在這裡，現在已經是八月了，對吧？因此，當我們關注活動時，我們會談論公園大道、第六大道等甲級建築的子市場。租金比六、九個月前上漲了兩位數，對嗎？因此，如果您在 6、9 個月前問我們其中一些租賃的按市價計算是多少，它們就不會像結果或正在醞釀的那樣強勁。因此，坐在這裡告訴您 2024 年可能會發生什麼，我們無法預測。但我認為您從我們這裡聽到的是，我認為這是非常重要的一點，對吧？

One of this -- spend a lot of time with counterparties talking about is sort of separating fact from fiction, right? The negative narrative that it's on the front pages every day versus what's actually going on in the field. And in these key submarkets in the better buildings, you're at an equilibrium level, right? You're sub 10% vacancy. And so it's allowing us to really put rents in those buildings, in those submarkets. And that is where a lot of our expiries are occurring this year, next year. And so we feel good about it. So where it will end up, I can't tell you, but I think there's positive momentum there.

其中之一 - 花大量時間與交易對手討論有點將事實與虛構分開，對吧？每天頭版上的負面報導與該領域實際發生的情況相反。在這些較好建築的關鍵子市場中，您處於均衡水平，對嗎？你的空缺率低於 10%。因此，它使我們能夠真正將租金投入到這些建築物、這些子市場中。這就是我們今年、明年的很多到期事件發生的地方。所以我們對此感覺良好。所以我不能告訴你它最終會走向何方，但我認為那裡有積極的勢頭。

That's very helpful. And I assume those comments around market rents being up over the last 6 months on a gross basis. So any update on how that's trended on the TI and rent free side?

這非常有幫助。我認為這些關於市場租金的評論在過去 6 個月中總體上有所上漲。那麼關於 TI 和免租方面的趨勢有什麼更新嗎？

The concessions are still stubbornly high, too high. So the rents have continued to inch up on the best of our buildings, concessions have remained where they've been.

優惠仍然居高不下，太高了。因此，我們最好的建築的租金繼續上漲，優惠仍然保持不變。

The next question is from Alexander Goldfarb with Piper Sandler.

下一個問題是 Alexander Goldfarb 和 Piper Sandler 提出的。

Steve, quite the honor for you to give the eulogy for Sam. So I have 2 questions. The first question is the new comp plan that you guys rolled out, one, are you terminating the old comp plan? And two, just the thought process, you put it out like 4:30 ahead of July 4 weekend. And just curious why it wasn't done as part of the annual proxy. Normally, companies will update comp plans at the start of the year. You guys did it mid-year. So just want to get some thinking about how you're looking at that, the decision that went into making it in the midyear and then are you terminating the old plan?

史蒂夫，你很榮幸為薩姆致悼詞。所以我有兩個問題。第一個問題是你們推出的新薪酬計劃，一是要終止舊的薪酬計劃嗎？第二，只是思考過程，你在 7 月 4 日週末之前 4:30 就將其發布了。只是好奇為什麼它沒有作為年度代理的一部分完成。通常，公司會在年初更新薪酬計劃。你們在年中就做到了。所以只是想思考一下你是如何看待這個問題的，在年中做出的決定，然後你會終止舊計劃嗎？

I want to -- Alex, I want to handle your comment about we snuck it out (inaudible) on a Friday. The fact of the matter is, is that the SEC regulations say, when you do something like that, you have to file an 8-K within 48 hours. So that turned out to be on that particular Friday. So we had to get it out. The second thing is our teams that handle this are used to a 4:00 closing. So they put it out after what they told me the 4:00 closing without really realizing that because it was pre-holiday, the markets would close at 1:00. So we're not in a sneaky business, and we did what we had to do. The rest of your question, Michael can handle.

我想——亞歷克斯，我想處理你關於我們在周五偷偷出去（聽不清）的評論。事實是，SEC 規定規定，當你做類似的事情時，你必須在 48 小時內提交 8-K。結果是在那個特定的星期五。所以我們必須把它拿出來。第二件事是我們處理此問題的團隊習慣於 4:00 結束。因此，他們在告訴我 4:00 收盤後就發布了該消息，但並沒有真正意識到因為是節前，市場將在 1:00 收盤。所以我們並不是在偷偷摸摸地做生意，我們做了我們必須做的事情。你剩下的問題，邁克爾可以處理。

So let me take them in pieces. Return in the old comp plan, the answer is no, that plan will expire. I think in 2025, as we sit here today, it doesn't look like it will earn, but we'll see. And it's not a big number either way. In terms of the comp plan now, why do it now? Look, I think our view was we felt it was -- we're in a challenging period. And we lost a few key people over the last few years or a few people, I should say. And we felt it was an important message to send to our team to put in place a plan that both incentivizes retention as well as rewards for performance during this period and coming out of this period. And so we put a plan in place. We think it's a great plan for shareholders, by the way. It requires sustained performance over a meaningful period of time. And so if the stock price goes up, obviously, the plan is more valuable and pieces of it don't even invest in until performance is achieved much higher than the price at which it was awarded.

所以讓我把它們分成碎片。返回舊的補償計劃，答案是否定的，該計劃將過期。我認為到 2025 年，當我們今天坐在這裡時，它看起來不會賺錢，但我們會看到。不管怎樣，這都不是一個大數字。就現在的補償計劃而言，為什麼現在這樣做？看，我認為我們的觀點是我們認為我們正處於一個充滿挑戰的時期。我應該說，過去幾年我們失去了一些關鍵人物或一些人。我們認為這是一個重要的信息，需要向我們的團隊發送，以製定一項計劃，既激勵保留，又獎勵在此期間和結束後的表現。所以我們制定了一個計劃。順便說一句，我們認為這對股東來說是一個很棒的計劃。它需要在一段有意義的時間內持續表現。因此，如果股價上漲，顯然該計劃就更有價值，並且只有在業績遠高於授予價格時才進行投資。

So it's very (inaudible) performance, we think it's great for shareholders, and we think it's great for the team. So the reaction in the team has been extraordinary. It was allocated to a broad group of people. We think we've ensured stability of the team for the next several years, which is important, important for shareholders. And frankly, our shareholders have been I think very helpful both in constructing the plan on the front end and follow up after. So (inaudible) January, we want to put in place now, make a very strong message to our team about the importance of if we drive value over time, what is there for everybody to receive and to get people excited and that's been the exact reaction, and I'm confident that we have a broad group of people that are even more laser-focused on how we're going to drive the stock race.

所以這是非常（聽不清）的表現，我們認為這對股東來說很棒，我們認為這對團隊來說很棒。所以團隊的反應非同尋常。它被分配給了廣泛的人群。我們認為我們已經確保了未來幾年團隊的穩定性，這對股東來說非常重要。坦率地說，我認為我們的股東在製定前端計劃和後續跟進方面都非常有幫助。所以（聽不清）一月份，我們希望現在就落實到位，向我們的團隊傳達一個非常強烈的信息，即如果我們隨著時間的推移推動價值的重要性，每個人都會收到什麼並讓人們興奮，這就是確切的我相信我們有一大群人更加關注我們將如何推動股票競賽。

It's important to note that Michael and others on our team communicated broadly with our largest shareholders in constructing this plan and got universal support from our shareholders, and so that's a very, very good thing. We have gotten also universal positive commentary from our peers in the industry about what we did, why we did it and what a good idea that was.

值得注意的是，邁克爾和我們團隊的其他人在製定這個計劃時與我們最大的股東進行了廣泛的溝通，並得到了我們股東的普遍支持，所以這是一件非常非常好的事情。我們還得到了業內同行對我們所做的事情、為什麼這樣做以及這是一個多麼好的想法的普遍積極評價。

Okay. And then the second the follow-up question, Steve, the studio deal on Pier 94. Just curious of more details, is Hudson going to be the main operator, what are the economics, what is your role? I mean obviously, you have a deep theatrical background in your family. So just more details on the economics and how the operations will run between you guys, Victor and Blackstone.

好的。然後是第二個後續問題，史蒂夫，關於 94 號碼頭的工作室交易。只是好奇更多細節，哈德遜將成為主要運營商，經濟是什麼，你的角色是什麼？我的意思顯然是，你的家庭有深厚的戲劇背景。因此，只需更多關於經濟以及 Victor 和 Blackstone 之間如何運作的細節。

We're not 100% finished with all the details on this deal. So we're not going to get into that. So what it is, basically, it will be the only studios in -- on the island of Manhattan. So we're extremely enthusiastic about it. We have half the deal. We came in with the land and Hudson Pacific is the operator and Blackstone is Hudson Pacific's partner, and now our partner. So there'll be more about that as we consummate this.

我們還沒有 100% 完成這筆交易的所有細節。所以我們不打算討論這個。所以它基本上是曼哈頓島上唯一的工作室。所以我們對此非常熱情。我們已經完成了一半的交易。我們帶著土地進來，哈德遜太平洋公司是運營商，黑石是哈德遜太平洋公司的合作夥伴，現在也是我們的合作夥伴。因此，當我們完善這一點時，將會有更多相關內容。

The next question is from Julien Blouin with Goldman Sachs.

下一個問題來自高盛的 Julien Blouin。

I guess just at a high level, I was wondering if you could give us any insight into leasing activity in San Francisco and Chicago. Maybe how you would compare those 2 markets, which of them is in better shape right now.

我想只是在較高的層面上，我想知道您是否能為我們提供有關舊金山和芝加哥租賃活動的任何見解。也許您會如何比較這兩個市場，其中哪個市場目前狀況更好。

It's Glenn. San Francisco, we've been fortunate enough, we've been very successful with 555 Cal, even given the markets which are quiet. There's very little new tenant demand in San Francisco, but we've been very insulated in a very successful way with 555. Chicago, I would say, is a different story that there is a lack of tenant demand, particularly big tenants. The action we have at the more is 100,000 feet and less tenant variety. The market there, I'd say is more quiet. But I think both cities generally, there is a lack of demand. There is uncertainty as it relates to the cities and the government. So I would say the kind of equal as it relates to the action. For us, specifically, Vornado we're in great shape in San Francisco, Chicago. We got a lot of space to lease. We had expirations that we're grappling with right now. We're feeling better. We just completed work-life program. We just had a huge broker of that last Wednesday night, which was a huge success. So we're now our way, but we got a lot of wood to chop.

是格倫。舊金山，我們很幸運，即使市場平靜，我們的 555 Cal 也非常成功。舊金山的新租戶需求很少，但我們以非常成功的方式與 555 隔離。我想說，芝加哥的情況不同，缺乏租戶需求，尤其是大租戶。我們的活動範圍為 100,000 英尺，租戶種類較少。我想說那裡的市場更安靜。但我認為這兩個城市總體來說，都存在需求不足的情況。由於與城市和政府有關，因此存在不確定性。所以我想說的是與行動相關的平等。對於我們來說，特別是沃納多，我們在舊金山和芝加哥的狀態很好。我們有很多空間可供出租。我們現在正在努力解決到期問題。我們感覺好多了。我們剛剛完成工作生活計劃。上週三晚上我們剛剛有了一個巨大的經紀人，這是一個巨大的成功。現在我們已經走上了正軌，但我們還有很多木材需要砍伐。

I would add a couple of comments. In San Francisco, we see -- we own the premier financial services building. So we are sort of different than all of the supply of technology building and so all of the important financial services, tenants and clients are in our building and have been there for 25 years and more. So the building is sort of unique, it's the highest quality, and it's by far the most important financial services building. So it's a great piece of real estate. In Chicago, similarly the building -- it's a great piece of real estate. The market is a little bit soft, and we're navigating that now.

我想添加一些評論。在舊金山，我們看到——我們擁有首屈一指的金融服務大樓。因此，我們與所有技術大樓的供應有所不同，因此所有重要的金融服務、租戶和客戶都在我們的大樓內，並且已經存在了 25 年或更長時間。所以這座建築是獨一無二的，它是最高質量的，也是迄今為止最重要的金融服務建築。所以這是一個很棒的房地產。在芝加哥，同樣的建築——它是一塊很棒的房地產。市場有點疲軟，我們現在正在應對這一點。

That's very helpful. And maybe as a quick follow-up. I may have missed it in the answer to Steve Sakwa's question, but what were the New York office leasing spreads in the quarter, excluding PENN 1?

這非常有幫助。也許作為一個快速的後續行動。我在回答 Steve Sakwa 的問題時可能忽略了這一點，但本季度紐約辦公室租賃價差是多少（不包括 PENN 1）？

Yes. I don't know we have that off hand. Well, we'll have to come back to you on that, Julien.

是的。我不知道我們有這個閒置的東西。好吧，朱利安，我們得再回复你這個問題。

We don't have that at our fingertips. We'll get back.

我們手頭沒有這個。我們會回來的。

Next question is from Anthony Paolone with JPMorgan.

下一個問題來自摩根大通的 Anthony Paolone。

You talked earlier about maybe selling some more stuff over the rest of the year. But if we look out the next 2 or 3 years, is there a part of the portfolio that you'd really like to get rid of, if you can or should we think about just any part of the business shrinking, whether it's retail or certain submarket.

您之前談到可能會在今年剩餘時間內出售更多東西。但是，如果我們展望未來 2 到 3 年，是否有您真正想要擺脫的投資組合的一部分，如果您可以或應該考慮業務的任何部分萎縮，無論是零售還是某些子市場。

There is no target on a particular type of our assets. I mean we're fairly concentrated in New York, in office and our retail is extremely unique. So we don't have a target on any particular division of our business. We don't have very many divisions. The office company headquartered in New York. We have a great building in San Francisco, another great building in Chicago and a retail presence on the most important streets in New York City. So we don't have a target. On the other hand, if we can sell assets for prices which are accretive to our stock and create shareholder value, that's something that we are looking at very intensely.

我們的資產沒有特定類型的目標。我的意思是，我們相當集中在紐約的辦公室，而且我們的零售店非常獨特。因此，我們對業務的任何特定部門都沒有目標。我們沒有太多的部門。該辦公公司總部位於紐約。我們在舊金山擁有一座宏偉的建築，在芝加哥擁有另一座偉大的建築，並在紐約市最重要的街道上設有零售店。所以我們沒有目標。另一方面，如果我們能夠以增值我們的股票並創造股東價值的價格出售資產，這就是我們非常關注的事情。

Okay. And then second one, just on NOI as we think about the second half of the year. In retail, the first couple of quarters were very consistent and you did a lot of leasing. So just what should we expect in the second half there? And then in office, it seemed like there was a big balance in the GAAP NOI 1Q to 2Q. And same question, just kind of how to think about second half.

好的。然後是第二個，就在我們思考下半年的 NOI 上。在零售業，前幾個季度非常穩定，並且進行了大量租賃。那麼下半年我們應該期待什麼呢？然後在辦公室，第一季度到第二季度的 GAAP NOI 似乎存在很大的平衡。同樣的問題，只是如何思考下半年。

Are we predicting the second half? I don't think so. So we're not forecasting or guiding for the second half. So that's a premature question. Sorry.

我們預測下半年嗎？我不這麼認為。因此，我們不會對下半年進行預測或指導。所以這個問題還為時過早。對不起。

The next question is from Nick Yulico with Scotiabank.

下一個問題來自豐業銀行的尼克尤利科。

I just wanted to go back to the asset sales. And I want to ask specifically about the Farley Building and whether you're contemplating any plan there to sell a joint venture stake in the asset. Just -- it seems like the type of asset would gather good investor demand, long-term lease with a strong credit tenant to a lot of success there. So any thoughts on that you can provide?

我只想回到資產出售。我想具體詢問一下法利大廈的情況，以及你們是否正在考慮出售該資產的合資企業股權的任何計劃。只是——看起來這種資產類型會吸引良好的投資者需求，長期租賃和強大的信用租戶會在那裡取得很大的成功。那麼您可以提供什麼想法嗎？

We like the assets just as much as you do. And we're not going to comment on its future.

我們和您一樣喜歡這些資產。我們不會對其未來發表評論。

Okay. I guess secondly, on Farley as well as -- I don't know if -- there's no mortgage there. So I don't know if that's also an asset that you're considering putting a mortgage on it, if you've had any conversation with banks, be sort of an interesting test case for a strong office building and the ability to finance it. Any thoughts you could share there?

好的。其次，我想法利以及——我不知道是否——那裡沒有抵押貸款。所以我不知道這是否也是您正在考慮抵押貸款的資產，如果您與銀行進行過任何對話，那麼這對於堅固的辦公樓及其融資能力來說是一個有趣的測試案例。您有什麼想法可以分享嗎？

I mean, we agree with you. It's a very strong asset with a very strong long-term lease on it. It's arguably one of the best buildings of its type and kind in the city. It has no mortgage. It has (inaudible). It has no financing on it. So obviously, it's a great asset and could be an important source of liquidity.

我的意思是，我們同意你的觀點。這是一項非常強大的資產，擁有非常強大的長期租賃權。它可以說是該市同類建築中最好的建築之一。它沒有抵押貸款。它有（聽不清）。它沒有融資。顯然，它是一項巨大的資產，並且可能成為流動性的重要來源。

The next question is from Ronald Kamdem with Morgan Stanley.

下一個問題來自摩根士丹利的 Ronald Kamdem。

Just 2 quick ones. So on the $0.72 of FFO in the quarter, can you just remind us what is a one-timer that we need to adjust for, what is recurring? So both is there any sort of lease termination or anything like that, so we can get the right sort of run rate?

就2個快的。那麼，關於本季度 0.72 美元的 FFO，您能否提醒我們什麼是需要調整的一次性的，什麼是重複性的？那麼是否有任何形式的租賃終止或類似的事情，以便我們可以獲得正確的運行率？

Yes. Ronald, I think there's a lot that goes in every quarter, right? It's one time, it's up, down, it's small. I think this quarter, probably a little more significant one timer from the tenant termination at 345 Montgomery, which was (inaudible). At the same time, we had a couple of cents that was related to St. Regis loan restructuring where the interest that was accrued during that default period was forgiven, and we were required to recognize that by GAAP, right? So that nets down to $0.05. And then on the stock comp, that will continue, as we said for the rest of the year, but be probably a lesser incremental amount for next year. So net-net, let's call it $0.05 this quarter that's true nonrecurring and the stock comp will decline a little bit as we get into next year.

是的。羅納德，我認為每個季度都有很多事情發生，對嗎？一次，上來，下來，小了。我認為本季度，蒙哥馬利 345 號的租戶終止可能會帶來更重要的影響，這是（聽不清）。與此同時，我們有幾美分與瑞吉貸款重組相關，其中在違約期間產生的利息被免除，我們需要根據公認會計原則承認這一點，對嗎？這樣淨值就降至 0.05 美元。然後，在股票比較方面，正如我們在今年剩餘時間內所說的那樣，這種情況將繼續下去，但明年的增量可能會較小。因此，淨淨額，我們稱本季度為 0.05 美元，這是真正的非經常性費用，進入明年時，股票比較將略有下降。

Great. Okay. So got it. So 72 down to 5, 67, got it. So just on the last one, just on the leasing. You talked about, I think, 5A in negotiation 1, 2 in the pipeline. Can we put that all in the blender. So how should we think about occupancy going from here, right? Is it flat? What are sort of the puts and takes you're thinking about the occupancy for the rest of the year and into next.

偉大的。好的。所以明白了。所以 72 降到 5，67，明白了。所以就最後一項，就租賃而言。我認為您在談判 1、2 中談到了 5A。我們可以把所有的東西都放進攪拌機裡嗎？那麼我們應該如何考慮接下來的入住率，對嗎？是平的嗎？您正在考慮今年剩餘時間和明年的入住率。

I'd say occupancy for the rest of the year, we'll hover around the (inaudible) now it depends when these deals happen, when they close and how everything goes here. So I think we will be pretty much at these levels over the next couple of quarters. But I'm hoping to see more absorption as we go based on getting these deals done over the next 3, 6 months or whatever it will be.

我想說的是，今年剩餘時間的入住率，我們將徘徊在（聽不清）現在，這取決於這些交易何時發生、何時結束以及這裡的一切進展如何。所以我認為在接下來的幾個季度我們將基本達到這些水平。但我希望在未來 3、6 個月或任何時間完成這些交易的基礎上，看到更多的吸收。

Look, I think Glen and his team are doing a great job on some of the expiries that are coming up. Some of this will be timing when those deals are -- I mean, we have some known move-outs, for example at 1290 to 280 and the extent we backfill those, then occupancy won't dip to the extent that there's a timing gap in terms of when it's backfilled, it will dip. So I agree with Glenn's comments around here where it will stabilize. But could it go down a little bit at the beginning of next year, depending on timing of whether we have the spec-build? It could. So I wouldn't hold your breath saying it's going to stay exactly 91% change from here on out. It may go down a little bit, but we're confident that with time, that space will get backfilled and the occupancy will get rebuilt.

看，我認為格倫和他的團隊在一些即將到期的問題上做得很好。其中一些將取決於這些交易的時機——我的意思是，我們有一些已知的遷出，例如從 1290 到 280，以及我們回填這些的程度，那麼入住率不會下降到存在時間差距的程度就回填時而言，它會下降。所以我同意格倫在這裡的評論，那裡的情況將會穩定下來。但明年初是否會略有下降，具體取決於我們是否有規範構建的時間？它可以。所以我不會屏住呼吸說從現在開始將保持 91% 的變化。它可能會下降一點，但我們相信，隨著時間的推移，該空間將被回填，並且佔用率將得到重建。

There are no further questions at this time. So this concludes our question-and-answer session. I would like to turn the conference back over to Steven Roth for any closing remarks.

目前沒有其他問題。我們的問答環節到此結束。我想將會議轉回史蒂文·羅斯（Steven Roth）發表閉幕詞。

Thanks, everybody, for attending. This is a record. I mean we've never done a call that was 35 or 40 minutes before. So in any event it's a record and is kind of surprising. We'll see you in 3 months on the next call. Have a great day.

謝謝大家的出席。這是一個記錄。我的意思是我們從來沒有在 35 或 40 分鐘之前打過電話。所以無論如何，這都是一個記錄，而且有點令人驚訝。我們將在 3 個月後的下次通話中見到您。祝你有美好的一天。

Ladies and gentlemen, this concludes today's conference. Thank you for your participation. You may now disconnect.

女士們、先生們，今天的會議到此結束。感謝您的參與。您現在可以斷開連接。